Devyani International reports net profit of Rs 58.76 crore

Devyani International that operates KFC, Pizza Hut and Costa Coffee in India reported a net profit of 28.6% to Rs 58.76 crore.

It also saw a 44.8% jump in revenue from operations to Rs 747.43 crore in Q2 FY23 over Q2 FY22.

Consolidated profit before exceptional items stood at Rs 70.05 crore in quarter ended 30 September 2022, registering a growth of 46.36% from Rs 47.86 crore posted in Q2 FY22. The company reported an exceptional item of Rs 11.29 crore in Q2 FY23.

EBITDA improved by 34.23% to Rs 165.5 crore in Q2 FY23 from Rs 123.3 crore in Q2 FY22. EBITDA margin stood at 22.1% in Q2 FY23 as compared to 23.9% reported in same period last year.

“DIL opened 88 net new stores in Q2 FY23, which is the highest store openings recorded in a quarter, taking the total count to 1,096 as of 30 September 2022,” shared the BSE filing.

According to the filing, KFC revenue grew by 47% year on year to Rs 443 crore, while Pizza Hut expanded by 36% year on year to Rs 1,81.2 crore.

Brand contribution at KFC came in at 21.5%, while Pizza Hut stood at 17%.

“I am pleased to share that DIL has maintained its store expansion pace and opened 88 net new stores in the quarter - the highest ever. We are making consistent progress in expanding our reach and investing in our Core Brands to capitalize on the growth opportunities available,” shared Ravi Jaipuria, Chairman, Devyani International.

He also shared that in line with the brand’s strategy, they have continued their focus on consolidating their presence in metro cities along with the expansion in non-metros towns.

“At the end of Q2, our total store count stood at 1,096 stores across our portfolio, with a split of 52% in non-metros and 48% in metro cities,” he added.

Devyani International is the largest franchisee of Yum Brands in India that operates 884 stores across more than 224 cities in India, Nigeria and Nepal, as of 31 December 2021. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India.

Shares of Devyani International declined 1.44% to Rs 184.70 on the BSE.